Case Study - Retirement Plus

From business blueprint to fully automated equity release in just 9 months.

The Client:
Equity release enables older homeowners to clear debts, boost retirement income, provide financial assistance to other family members and invest in property overseas. In addition to the classic lifetime mortgage and home reversion plan providers, the sector is attracting new entrants offering a new breed of innovative and flexible products.

One such company is London-based Retirement Plus, founded in late 2004 by Chris Rumsey, now Commercial Director, and Duncan Young, now Managing Director. Using Rumsey’s expertise in property and investment management, and Young’s know-how in financial services and banking, together with financial backing from property investors including British Land and Delancey, the company has developed a new approach to equity release that doesn’t involve debt.

The Process:
The company’s equity release product, “The Property Plan” was scheduled for launch in November 2005, by which time the system needed to be ready, tested and able to accept applications. Rumsey sought a solution that would handle the entire application process on-line, while linking into existing systems such as on-line valuation, conveyancing and credit referencing systems. The system needed the ability to evolve and grow, both in functionality and capacity, as the business and products develop. Therefore it needed to be adaptable and easily configured to accommodate business change. Equity release documents need to be stored for a minimum of the remaining lifetime of applicants (in some cases as much as 40 years), so secure long term archival was paramount.

The Business Challenge:
From the outset Rumsey acknowledged that a sophisticated IT system was required to underpin the whole operation: “We developed a hundred page functional business blueprint that detailed all aspects of the business we planned to build. We wanted to combine all the best aspects of an effective IT system with the very best personal service offering to maximise sales and provide outstanding customer service. We knew the system needed to have proven success in the mortgage application processing market, but be easily adaptable to accommodate the changing needs of a start-up business and an innovative new equity release product.”
 

The Solution:
Retirement Plus purchased eFIRST Origin, an end-to-end solution for mortgage application processing. The company also bought configuration and setup consultancy, to adapt the software to meet their specific equity release requirements.

eFIRST Origin is a flexible web-based solution that can be used 24/7 by brokers and financial advisors who can access product information, on-line application forms, status tracking facilities and statistical information. Retirement Plus products have a strong element or fairness, and can only be bought through an FSA-regulated third party to ensure that the homeowner has considered all implications of the purchase. A workflow-based solution, eFIRST Origin can be configured to apply product rules at each stage in the process, to ensure that all mandatory data is collected. It can also be configured to automatically generate documents such as a Key Facts Illustration (KFI), Decision in Principle (DIP), Property Plan Offer or a simple message, at the appropriate stage of the process. A comprehensive audit record of all system and data changes is maintained and in-depth management information reports are generated to facilitate business analysis.

All application forms are completed on-line and submitted electronically, eliminating the need to re-key application information. The offer is generated and distributed in paper form as it must be signed by various parties. The system also issues annual statements and records the answers to routine questions, which occasionally check that the owner still resides at the address. Periodic re-evaluations are conducted and stored electronically. The “Online Calculator” enables any prospective client to visit the web site and assess the maximum equity they could release simply by entering their age, sex and property value. eFIRST Origin already meets the requirements of the FSA. When the equity release industry becomes fully regulated in the future Retirement Plus will be well prepared.

The system is fully hosted by SDS offsite in the London Docklands. Retirement Plus moved offices within four months of product launch, and it was crucial that everyday business was not interrupted. In the event, the move caused no disruption whatsoever. Staff members required very little training and brokers have commented on the ease of use of the system.

The Benefits:
“The solution brilliantly maps onto our functional business blueprint and caters for all our current and future needs without providing costly, complex facilities that we’ll never use,” says Rumsey. “Our business is based on providing an efficient yet personal service, and we enjoy working with suppliers that share this philosophy. We have found that the on-line mortgage application processing system, implemented by BancTec, is well supported by real people.”

Retirement Plus is operating in a fast developing market with constantly changing regulations. With eFIRST Origin the company can embrace new developments and incorporate best practice processes introduced over time as professionals with industry knowledge join the organisation. The efficiencies gained afford the time to provide the personal service that will keep Retirement Plus one step ahead in the future.